Skype: What Should Ebay Do?

Author
Aron Schatz
Posted
October 2, 2007
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6668

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Since acquiring Skype, Skype has been devalued. Ebay is losing money because of the acquisition and what should Ebay do? Dump them...

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On Monday, eBay said it would take a $900 million so-called impairment write-down against the value of Skype. This means that eBay has been forced to reassess the value of the Internet telephony company relative to its overall business today. By recording a charge, the company is essentially saying that it has taken a loss on its original investment. In what looks like an attempt to shake things up at Skype and move the division in a new direction, eBay also said Monday that Skype co-founder and Chief Executive Niklas Zennstrom has stepped down.

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